Should You Invest in Abeona Therapeutics (ABEO)?

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed the benchmark in the second quarter due to the portfolio’s defensive positioning and the market’s preference for low-quality companies. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Riverwater Micro Opportunities Strategy highlighted stocks such as Abeona Therapeutics Inc. (NASDAQ:ABEO). Abeona Therapeutics Inc. (NASDAQ:ABEO) is a clinical-stage biopharmaceutical company. The one-month return of Abeona Therapeutics Inc. (NASDAQ:ABEO) was 9.71%, and its shares gained 22.60% of their value over the last 52 weeks. On September 05, 2025, Abeona Therapeutics Inc. (NASDAQ:ABEO) stock closed at $6.89 per share, with a market capitalization of $353.309 million.

Riverwater Micro Opportunities Strategy stated the following regarding Abeona Therapeutics Inc. (NASDAQ:ABEO) in its second quarter 2025 investor letter:

“Abeona Therapeutics Inc. (NASDAQ:ABEO): Abeona Therapeutics offers a compelling opportunity as a first-mover in curative gene therapies for severe rare dermatological diseases, anchored by its FDA-approved Zevaskyn for recessive dystrophic epidermolysis bullosa (RDEB). Zevaskyn’s single-treatment model—delivered via gene-corrected autologous skin grafts—has demonstrated high efficacy (≥50% wound healing in 81% of treated sites) with durable results and minimal safety concerns, differentiating it from its only rival, Krystal’s Vyjuvek, which requires chronic re-application. The company has implemented an outcomes-based pricing model and is supported by favorable regulatory shifts enabling value-based reimbursement frameworks, easing Medicaid’s historical reluctance.

Its vertically integrated cGMP manufacturing facility in Cleveland enhances supply chain control and scalability, mitigating risks that have plagued other gene therapy launches. ABEO operates in a niche market, targeting a subset of approximately 750 eligible patients in the U.S.—with the company focusing on roughly 20% of that population. Despite the small addressable market, the therapy commands a high price point of $3.1 million per patient, supported by potential gross margins in the high 80s as production scales. This dynamic positions ABEO to generate significant operating leverage. We plan to publish an in-depth research paper on ABEO later this quarter.”

Abeona Therapeutics Inc. (NASDAQ:ABEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Abeona Therapeutics Inc. (NASDAQ:ABEO) at the end of the second quarter, which was 26 in the previous quarter. While we acknowledge the risk and potential Abeona Therapeutics Inc. (NASDAQ:ABEO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Abeona Therapeutics Inc. (NASDAQ:ABEO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Abeona Therapeutics Inc. (NASDAQ:ABEO) and shared the list of stocks under $10 to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.